Swiss President Uelie Maurer has claimed that the Libra project, a Facebook-led stable coin-type cryptocurrency, cannot succeed with the current model. The statement from the Swiss president on libra come together as he points out the rework. That is to win the approval, Reuters reported.
Libra Association has its headquarter in Switzerland and is working to win approval from local regulators. It is a consultative body among companies participating in the Libra project, including Facebook. The Swiss government president came forward with a negative opinion towards the current operational structure of the Libra.
In an interview with Swiss broadcaster SRF, Maurer said, “I don’t think (Libra has a chance in its current form), because central banks will not accept the basket of currencies underpinning it”.
Not only Swiss, but many countries have also expressed concerns over Libra
Previously, Facebook released the Libra White Paper in June. Signaling that the Libra Reserve will be linked to a basket of currencies consisting of major currencies and government bonds from each country.
Last October, the German news site reported in the Libra currency basket that 50 percent would be the U.S. dollar. And the rest 18 percent be the EU euro, 14 percent the Japanese yen, 11 percent the British pound and 8 percent the Singaporean dollar. These currencies work to maintain Libra prices.
However, since the white paper released, Libra has faced strong criticism from government regulators and politicians. Concerns have been mounting that it could affect the government’s monetary policy. As well as the global financial environment from privacy violations.
Facebook is ready to introduce the Libra in 2020, emphasizing financial innovation and engagement. However, it has not secured a broad base of support from policy authorities. Even Facebook does not rule out the possibility of a delay in the launch of the Libra.
In addition to the basket model that combines multiple calls, Facebook is also considering other reserves. David Marcus, who heads the Libra project on Facebook, recently left open the possibility of introducing Libra, saying, “We can combine multiple currencies and do it separately without forming a reserve.”